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01 SUV Report

September 2023

In this report, we outline how European independent software vendors (ISVs) have integrated payment capabilities within their product offering. Our key takeaways are three-fold:

  1. Merchant acquirers who have historically held direct merchant relationships have experienced increasing disintermediation risk from i) payment service providers and ii) ISVs.
  2. There is a wide dispersion of payment enablement across vertical markets, ranging from: highly penetrated offline hospitality verticals like wellness and restaurants, through to more complex industries which focus on software, such as energy and construction.
  3. Our bottom-up analysis of ten vertical software markets has identified a group of around 20 interesting ISVs in Europe.

July 2023

We break down our 2Q23 review into four short sections:

  • Public Markets: Resilient performance from public equities despite real yields above 2% and a deeply inverted yield curve
  • European Fundraising: Venture & Growth markets improved sequentially (+25%), but remain well below 2022 levels (-61%)
  • Deal round-up: We pick out notable deals in Life Sciences and Generative AI, amongst other areas
  • Fund flows: We assess the velocity of capital in the venture & growth market, breaking down the liquidity cycle into three stages: i) GP fundraising, ii) capital deployment, iii) exits/returns.

July 2023

Our new report examines go-to-market and pricing strategies for 150 of the most promising venture-backed AI companies. The analysis highlights key learnings and establishes benchmarks to assess which models are likely to help companies differentiate as the market matures

  • 3x: AI market leaders average ~3x the number of pricing/sales channels than their emerging peers
  • Barbell Market: Flurry of deals early + capital highly-concentrated late = opportunities for Series B/C investors
  • Verticalizing Apps: Commercialization timelines likely to condense as vertical software apps overtake DeepTech models
  • Partnerships Prevail: Corporates are buying, investing, and partnering to determine early infrastructure winners

June 2023

The first report in our vertical software series explores:

  • Size of the market opportunity
  • Different business models and capital formation
  • Recent strategic M&A objectives
  • Our view on the valuation environment

May 2023

This report summarizes some key trends in cybersecurity including:

  • Current market perspectives and learnings from 2022
  • Emerging threat trends
  • Securing the software supply chain
  • Zero trust identity protection becomes table stakes
  • Securing AI/ML solutions an emerging, dynamic challenge
  • XDR is driving the modernization of security operations
  • Attackers increasing focus on data opportunities

April 2023

Our latest report on the healthcare tech space explores:

  • Post-pandemic trends are still transforming the industry
  • Consumers seeking loyalty, personalization
  • Improving the revenue cycle
  • Data sharing key to progressing outcomes-based care
  • The evolving role of AI in healthcare
  • Hybrid, chronic condition, and specialty care solutions
  • The talent and skills crisis demands software solutions
  • Governance, privacy, and security in focus

April 2023

This report marks the first quarterly review of the European venture & growth market from VGB Insights. In the report we aim to do three things:

  • Provide an overview of key trends across 1Q23
  • Include a round-up of deal flow and investor participation
  • Outline key challenges for the asset class in the coming quarters

March 2023

The T100 is a carefully curated list of the most interesting private companies in Europe that we expect to undertake a venture growth style financing in the next 12-18 months

March 2023

The summit confirmed the growing investor appetite for AgriTech and FoodTech solutions given:

  • The sectors are underfunded relative to other segments of energy transition
  • There is robust investment opportunity in areas like biologics, biofuels, and gene editing
  • Net zero goals require a fundamental change to the food system. (production processes account for more than one-third of greenhouse gas emissions)

January 2023

Our 2023 outlook explores themes across each of our 6 sectors:

  • InfraTech: Voluntary carbon markets
  • Enterprise Software: The modern data stack
  • FinTech: Embedded finance
  • Healthcare: Value-based care-enabling technology
  • DeepTech: Sorting through the AI landscape
  • Consumer: TravelTech

January 2023

Our positive thesis on ShipTech is driven by:

  • Fragmented and under-digitized market
  • Growing ESG tide accelerating the need for digital solutions
  • Large addressable market that we estimate to be $5-8bn

October 2022

Read our key reflections post the 2022 SaaStr conference including:

  • Resilience of SaaS models in the fundraising market
  • Valuations beginning to normalise
  • Investors gravitating towards earlier rounds
  • Efficient operations prioritized over growth
  • Value opportunities for M&A

October 2022

E-commerce fulfilment continues to benefit from:

  • Increasing online penetration
  • Attractive unit economics
  • Increased private capital flows

August 2022

We break down the revenue-based financing market aiming to:

  • Size the potential target market
  • Explore key demand drivers
  • Unpack the operating model
  • Evaluate performance through the business cycle
  • Outline possible key risks
  • Highlight recent funding levels

June 2022

Our review of our T500 conference addresses 10 key themes from the event:

  • Startups transforming Europe
  • Tech accelerating energy transition
  • Impact capital flowing into infratech
  • Sustainability a key driver of consumer demand
  • Gen Z moves into the metaverse
  • AI transforming healthcare
  • Finance replatforming and decentralising
  • SaaS becoming narrower and deeper
  • AI finally coming of age
  • Inclusion is a driver of growth

Meet Lazard's Venture & Growth Insights Team...

Ali Birkby

Vice President

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Tyler Holly

Vice President

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Nick James

Managing Director & Co-Team Lead

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Matthew Sykes

Analyst

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...And the Full Venture & Growth Banking Team

Garri Jones

Managing Director & Co-Team Lead

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Christopher Britton

Managing Director

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Amy Cozamanis

Managing Director

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Julian Tsoi

Director

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Luke Thomson

Director

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Cristiano Vinattieri

Vice President

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George Mennem

Vice President

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Adrien Ramesan

Vice President

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Emma Williams

Associate

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George Hailstone

Associate

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Federica Raynieri

Associate

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Ahmed Harrath

Associate

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Teresa Bruno

Analyst

Yohan Gomez

Analyst

Adarsh Shukla

Analyst

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Max Ellsworth

Analyst

Joseph Zhang

Analyst

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Emmanuel Letard

Analyst

Ben Takowsky

Analyst

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Heather Hall-Johnson

Executive Assistant

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Victoria Barrett

Executive Assistant

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Seema Pabila

Executive Assistant

Ellie Stepaniak

Executive Assistant

Rita Wright

Executive Assistant


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